Former President John Mahama cut the tape to open the Komenda Sugar Factory
Chief Executive Officer (CEO) of McDan Shipping Company, Daniel McKorley, has criticized the revamping of the Komenda Sugar Factory in May last year by the former National Democratic Congress (NDC) administration.
According to him, the NDC administration could have created the enabling environment for the private sector to operate.
He said most of the businesses and contracts that the previous administration signed were unnecessary.
Speaking to Joy Fm Wednesday in Accra, McKorley quizzed: “Why should government borrow money through private individuals to build a sugar factory which is not working?”
“That factory is a white elephant. It will never work…You think if it was a private man’s money that factory will be a white elephant? Just do your investigations, that factory will never work. I tell you,” he said categorically.
McKorley additionally noted that despite the talk of promoting private sector development, the previous government did not allow the private sector to lead.
Details of deal
The EXIM Bank of India provided the loan which was used in building the factory. It has an interest of 1.75 percent with a five-year moratorium. The loan repayment will begin in the sixth year while the Ghana government is providing a counterpart funding of $1.26 million.
The factory closed down in July last year after the sugarcane season subsided.
The shutdown of the factory was condemned by the then opposition New Patriotic Party (NPP), which indicated that the project was inaugurated for propaganda purposes and not for sound economic judgment.
However, the Trade Ministry explained that the raw material-sugarcane- had entered its lean season, hence the closure of the revamped factory for maintenance.
It said that the company would reopen in November 2016.
By Samuel Boadi